Kyrgyzstan EOR & PEO

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Hire in Kyrgyzstan

Kyrgyzstan is experiencing strong growth, with approximately 6% in 2023. Kyrgyzstan is a low-cost economy with monthly wages averaging 372.046 USD; in addition, the country has significantly improved its education in addition to growth in exports and transit trade between Russia and China. Kyrgyz people are considered hardworking and industrious, and with Kyrgyzstan’s cost of living around 60% lower than the US, hiring in Kyrgyzstan could help affordably expand your workforce.

Read on to find out how a Kyrgyzstan Employer of Record (EOR) solution can help you hire in Kyrgyzstan.

Facts & Stats

hire employees in Kyrgyzstan

What Is a Kyrgyzstan EOR?

A Kyrgyzstan Employer of Record (EOR) is a service provided to foreign companies that want to establish a workforce without registering a legal entity in the country. The role of an EOR is to manage, pay, and apply labor law on behalf of your business. A Kyrgyzstan EOR will take care of various HR and employment measures, including onboarding, training new staff, tax compliance, and offboarding. An EOR ensures that all terms in the contract are communicated and the best employment practices are implemented.

The terms Kyrgyzstan Employer of Record (EOR) and Kyrgyzstan Professional Employer Organization (PEO) are generally used interchangeably.

Save Money And Time with A Kyrgyzstan EOR

What Are the Benefits of a Kyrgyzstan EOR?

Hiring workers in Kyrgyzstan would be extremely challenging if you didn’t have an EOR on your side. Hiring the services of an EOR makes it easier to remain compliant with mandatory laws, and they can help you save on the costs of onboarding employees. Additional benefits of a Kyrgyz EOR include:

Compliance with labor laws: Understanding all of the labor laws, tax requirements, and employment processes in Kyrgyzstan would take a significant amount of time, and the language differences could make this more complicated. More than 4 million people out of a population of 6.9 million in Kyrgyzstan speak Kyrgyz and Russian, so partnering with an EOR will help you facilitate contract negotiations and better understand mandatory employee benefits and employment practices.
Affordability: The costs of an EOR include a fixed rate paid on a monthly basis compared to the ongoing expenses that businesses encounter when recruiting staff, drawing contracts, and hiring auditors for various employee requirements.
Legal compliance: An EOR will ensure that you provide mandatory benefits, such as social security, and adhere to the minimum wage requirements of KGS 2337 as of January 2023. They help employers uphold their responsibilities, which include registering employees with the Social Fund in Kyrgyzstan. EORs in this country can protect the rights of your workers and your rights as a business.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Kyrgyzstan EOR through:

A strong regional presence in Central Asia, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $499 per employee, per month, no EOR in Kyrgyzstan is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Kyrgyzstan EOR

How Does a Kyrgyzstan EOR Work?

A Kyrgyzstan EOR works by representing your business as a legal employer when you do not have a registered business in the country. The following services are provided by an EOR:

Hire your employees: A Kyrgyzstan EOR assists with hiring employees as they have access to the best talent pools. Foreign businesses will find it very hard to recruit staff in Kyrgyzstan without awareness of labor laws, the culture, or the language. An EOR will help you hire employees within days to weeks rather than months.
Manage employment contracts and onboarding: In Kyrgyzstan, employers must follow the country’s labor code, which consists of 41 chapters and 448 articles. A Kyrgyz EOR makes this easier by explaining the types of employment contracts and onboarding processes foreign businesses must follow. Kyrgyzstan offers fixed, open-ended (does not specify an end date), part-time, and contractor agreements.

The Kyrgyzstan EOR handles onboarding, from advising on the right type of employment contract to ensuring that the employer’s offer is compliant with the Labor Code. An employer of record helps new workers transition into their roles by respecting the Kyrgyz culture and communicating terms and conditions in the main languages.
Process payroll and handle employment taxes: Employers in Kyrgyzstan have the option of hiring a specialized firm or an international HR provider to facilitate payroll and employment taxes, which is costly and time-consuming. The Kyrgyzstan EOR simplifies payroll by adhering to labor law when overseeing benefits and compensation.

Kyrgyzstan places a number of tax responsibilities on employers, including social security and personal income tax (PIT), which they can withhold from employees’ salaries. Employers must pay a 10% PIT rate, while the standard VAT rate in Kyrgyzstan is 12%. As a foreign company hiring the services of an EOR, you are obligated to pay sales tax on product sales and other services. This includes a 1% charge on cash sales and 2% for bank payments. Relying on the services of a Kyrgyz EOR guarantees compliance with payroll and taxation so your business can avoid legal proceedings.
Administer benefits: The Kyrgyzstan government has mandated specific benefits for employees, such as paid leave, social security contributions, and statutory health insurance. A Kyrgyz EOR specializes in administering these benefits to employees, which means that you remain compliant and employees are satisfied as their needs are taken care of.
Take care of exit procedures: An EOR facilitates employee exit procedures or offboarding by handling the resignation or termination process according to Kyrgyzstan’s Labor Code. These practices may include interviews, written notices, and paying the necessary compensation. Because Kyrgyzstan has specific labor laws surrounding the termination of employment, an EOR with knowledge of these processes will protect foreign businesses from non-compliance. This includes the payment of severance packages.

stay compliant with Kyrgyzstan labor laws

Labor Laws

Kyrgyzstan operates according to the Labor Code of the Kyrgyz Republic, and an EOR will ensure that your business adheres to these legalities. This includes meeting the minimum wage and probationary periods for new employees, paid leave, overtime, and handling termination of employment contracts.

Employment contract types

There are three types of employment contracts in Kyrgyzstan: fixed-term contracts, generally lasting 5 years; open-ended or indefinite contracts offered to permanent staff; and part-time contracts, specifying the number of working hours. Kyrgyzstan offers employers flexible hiring solutions, such as contractor agreements, in which industry experts provide a contracted service for a specified period rather than being hired as employees.

Project-based

Fixed-term

Indefinite

Working hours in Kyrgyzstan

In Kyrgyzstan, regular working hours are 40 hours per week. If employees are required to work overtime, they must be paid 1.5 times their standard hourly rate.

Overtime must be compensated in the following way:

Holiday Schedule in Kyrgyzstan [2024]

Kyrgyzstan has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan, 2024	New Year’s Day
8 Jan, 2024	Orthodox Christmas Day
23 Feb, 2024	Defender of the Fatherland Day
21 Mar, 2024	Nowruz
1 May, 2024	Labor Day
6 May, 2024	Constitution Day
9 May, 2024	Victory Day
31 Aug, 2024	Independence Day

Paid time off

The developing Asian country offers workers several types of paid leave, and each is subject to entitlements as set forth by the Labor Code. This includes annual leave, sick or disability leave, and maternity leave.

Sick leave in Kyrgyzstan

All Kyrgyzstan workers receive paid sick leave, provided they issue a medical certificate. The amount of compensation and duration of sick leave depend on the guidelines of the Labor Code.

Less than 6 months of sick leave

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Kyrgyzstan

Maternity leave is about 70 days before the expected date of birth while post-natal leaves are 56 days (extendeds to 70 days in case of complicated childbirth or the birth of two or more children). This is paid at 100% of the average earnings of the employee.

There is no specific statutory provision for paid paternity leave in Kyrgyzstan’s Labor Code. Fathers may be eligible for unpaid leave or may negotiate paid leave with their employer.

Parental leave is also available to both parents up to three years to care for a child.

Annual leave in Kyrgyzstan

Every employee in Kyrgyzstan is entitled to 28 days of annual leave paid in full. An employee can take vacation leave based on the notice they provide to the employer. These notice periods are recorded in the employment contract.

Termination & severance in Kyrgyzstan

In Kyrgyzstan, the employer must give the employee the required minimum notice period in writing based on the type of employment contract and the reason for termination. Furthermore, the termination procedure depends on the reason for the dismissal and whether ending the employment contract is initiated by the employer or employee.

Articles 123 and 125 of the Labor Code govern severance pay in Kyrgyzstan, which typically consists of one month’s salary. However, the amount can change depending on the terms of the employment contract.

Kyrgyzstan's compulsory social security contributions

Compulsory social security contributions are managed by the Social Fund and cover various social insurance programs, including pensions, health insurance, and other benefits.

Kyrgyzstan social security for foreigners

The compulsory social security contributions generally apply to all employees working in Kyrgyzstan, including foreign employees, unless there is a bilateral agreement between Kyrgyzstan and the employee’s home country that provides exemptions or alternative arrangements.

Individual income tax

Kyrgyzstan, the individual income tax system is relatively straightforward. The flat rate for personal income tax in Kyrgyzstan is 10%.

Health insurance

In Kyrgyzstan, health insurance is primarily managed through the Mandatory Health Insurance Fund, and provides access to a range of medical services, including outpatient and inpatient care, preventive care, emergency services, and essential medications.

All employees, including foreign workers, are typically covered under the mandatory health insurance scheme, provided that the contributions are made. Self-employed individuals and certain other categories may also be eligible for coverage if they voluntarily contribute to the fund.

hassle-free Kyrgyz compensation & benefits

Compensation & Benefits

Kyrgyzstan compensation laws

The minimum wage in Kyrgyzstan is 1,970 Kyrgyzstani Som (KGS) per month. This rate applies to all sectors of the economy. The EOR pays employee compensation such as severance, annual leave, and overtime according to the Labor Code.

13 month salary in Kyrgyzstan

A 13th-month salary is not a mandatory requirement in Kyrgyzstan. Employers can, however, offer optional benefits to employees to retain their staff and create a happier workforce.

Social security for Kyrgyz nationals

Employees are obligated to contribute 10% of their salaries to social security. The employer’s contribution consists of 15% of an employee’s wage towards the pension fund and 2% towards social security. The Kyrgyzstan employer is responsible for registering their workers with the social fund.

Kyrgyzstan Employer Of Record Peo

Navigation

Hire in Kyrgyzstan

What Is a Kyrgyzstan EOR?

What Are the Benefits of a Kyrgyzstan EOR?

Why Choose Horizons?

How Does a Kyrgyzstan EOR Work?

Labor Laws

Employment contract types

Working hours in Kyrgyzstan

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What are the benefits of using an EOR in Kyrgyzstan for international companies?

Hiring an EOR in Kyrgyzstan as a foreign company makes it easier to onboard employees with specific skill sets in a short period of time. Rather than go through the hassle of setting up a legal entity in the country, the Kyrgyz EOR acts as an employer on your behalf, taking care of legal matters while you focus on employee management and performance. An EOR makes it easier to comply with the country’s Labor Code, which consists of 448 Articles. This way, international companies can avoid paying fines or facing lawsuits if they do not adhere to labor laws. If your business is not fluent in Kyrgyzstan’s main languages, Kyrgyz and Russian, communicating with the workforce and completing documentation would be problematic. Instead, an EOR offers professional support and expertise for compliance and a successful workforce.

How does an EOR in Kyrgyzstan manage employee contracts and benefits?

When you hire an EOR in Kyrgyzstan, they will learn about your organization and help you find employees that best fit the position and the corporate culture. EORs manage employee contracts and benefits by acting as a mediator between the employee and the employer. During the onboarding process, the Employer of Record will explain which labor laws you must abide by; for example, they’ll tell you how much to contribute towards social security and the types of paid leave to include in the contract. Both mandatory and optional benefits are discussed so you can provide workers with valuable offers such as contributions toward health and life insurance.

Kyrgyzstan EOR & PEO

Start hiring in Kyrgyzstan

Simple, compliant hiring with Horizons EOR & PEO

Hire in Kyrgyzstan

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hire employees in Kyrgyzstan

What Is a Kyrgyzstan EOR?

Save Money And Time with A Kyrgyzstan EOR

What Are the Benefits of a Kyrgyzstan EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Kyrgyzstan EOR

How Does a Kyrgyzstan EOR Work?

stay compliant with Kyrgyzstan labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Kyrgyzstan

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Kyrgyzstan

Less than 6 months of sick leave

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Kyrgyzstan

Annual leave in Kyrgyzstan

Termination & severance in Kyrgyzstan

Kyrgyzstan's compulsory social security contributions

Kyrgyzstan social security for foreigners

Individual income tax

Health insurance

hassle-free Kyrgyz compensation & benefits

Compensation & Benefits

Kyrgyzstan compensation laws

13 month salary in Kyrgyzstan

Social security for Kyrgyz nationals

Hire in Kyrgyzstan in 24h without your own local entity.

Frequently asked questions

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